Why Wedbush Is Growing Bullish on These 3 Diverse Tech Stocks

By Chris Lange Published Aug 11, 11:11AM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Why Wedbush Is Growing Bullish on These 3 Diverse Tech Stocks — © scyther5 / iStock

Earnings season is beginning to wind down and tech stocks are wrapping it up this week. For the most part, analysts have been fairly positive this earnings season, especially with the broad markets hitting all-time highs. As a result, Wedbush is coming out with a few of its top tech picks to close out the season.

The recent July employment report and lower interest rates seem to be setting the scene for tech stocks to keep running higher, and Wedbush has three picks that are looking to outperform the market in the coming months.

24/7 Wall St. has taken a close look at the reports and picked out some of the highlights that investors can use to make informed choices on these stocks.

[nativounit]

Coinbase

Wedbush reiterated an Outperform rating and raised its Coinbase Global Inc. (NASDAQ: COIN | COIN Price Prediction) price target to $300 from $275. That implies upside of 11% from the most recent closing price of $269.67. Overall, the firm believes the ecosystem’s user base and engagement are expanding, as seen in Coinbase’s recent earnings report. On the surface, the quarterly beat was huge, and despite a sequential decline in crypto assets on the platform, September’s monthly transacting users are expected to decline from the June quarter.

On Wednesday, Coinbase stock was trading up about 8% to $291.14. The consensus price target is $381.73, and the 52-week range is $208.00 to $429.54.

FuboTV

Wedbush also reiterated an Outperform rating on FuboTV Inc. (NYSE: FUBO). Its $53 price target implies upside of 85% from the most recent closing price of $28.64. Overall the firm expects cord-cutting and cord-shaving to continue for the foreseeable future, and that a sizable portion of the population will grow up as “cord-nevers,” preferring customizable bundles of content to pre-determined multichannel video programming distributor programming.

Wedbush believes that FuboTV’s ability to offer comprehensive entertainment and sports viewing is a real differentiator, and its focus on sports should serve to accelerate subscriber growth. As the company learns more about the viewing habits of its audience, it should be able to exploit this data to drive advertising average revenue per user even higher. Considering the company has tripled its subscriber base in the past two years, Wedbush expects that base to double again in the next two years.

FuboTV stock traded up over 8% to $31.09 on Wednesday, in a 52-week range of $8.26 to $62.29. The consensus price target is $39.50.

[recirclink id=932682]

Unity Software

On Unity Software Inc. (NYSE: U), Wedbush reiterated an Outperform rating and raised the price target to $129 from $125, which suggests upside of 20% from the most recent closing price of $107.15. Unity delivered top-line growth of over 30% for its 11th straight quarter amid a reopening economy and ongoing privacy changes at Apple.

Revenue growth in the second quarter was primarily due to the strength of Unity’s contextual advertising models, which does not rely on user tracking data from Apple. Instead, this is based on end users’ engagement and platform performance. Overall, Wedbush thinks advertisers will continue to turn to Unity for its vast access to user data and the road to 3D content creation.

Unity Software shares were trading up over 8%, at $116.28 in a 52-week range of $65.11 to $174.94. Analysts have a consensus price target of $123.05.

[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.